USA and Canada to Lead Global Migration to 5G Finds GSMA Study

North America’s Mobile Ecosystem Contribution to GDP to Increase 32
Per Cent Over Next Four Years to Reach $1.1 Trillion by 2022

September 12, 2018 11:00 AM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--Almost half of all mobile connections in North America are forecast to
be running on 5G networks by 2025, according to a new GSMA report,
suggesting that the region will migrate to 5G at a much faster rate than
comparable markets in Europe and Asia. The latest edition of the GSMA’s
flagship Mobile Economy series, published at Mobile World
Congress Americas this week, predicts there will be around 200 million
5G mobile connections in the USA and Canada by 2025, representing 49 per
cent of the projected total market by that point. The report also
calculates that North America’s mobile ecosystem generated more than
$830 billion in economic value last year, equivalent to 4 per cent of
the region’s GDP1.

“Mobile operators in North America are now making record levels of
investment to upgrade networks and acquire spectrum as we commence the
5G era,” commented Mats Granryd, Director General of the GSMA. “With
nationwide mobile broadband coverage and high levels of smartphone
ownership, consumers across the US and Canada are highly engaged and
early adopters of new types of digital service and content – and we
therefore expect these two markets to migrate rapidly over to new 5G
networks over the coming years.”

Subscriber Base Exceeds 300 Million 4G is currently the
dominant mobile technology in North America (accounting for 70 per cent
of connections in 2017) and will continue to grow until next year, when
5G will begin to make an impact. US operators will launch the first
commercial 5G networks by this year, with operators in Canada expected
to launch 5G in 2020. It’s expected that by 2025, the 5G adoption rate
in North America (49 per cent of connections) will be significantly
ahead of Europe (30 per cent) and key Asian markets such as China, Japan
and South Korea (30 per cent, aggregate).

The number of unique mobile subscribers2 in North America
exceeded 300 million in 2017, representing 84 per cent of the
population, the second-highest subscriber penetration rate globally,
behind Europe. The subscriber base is forecast to increase to 328
million by 2025, lifting the penetration rate to 86 per cent.

Region’s Mobile Industry Undergoing Rapid Transformation The
impact of next-generation mobile technologies and services is resulting
in a growing contribution to the region’s economy. By 2022, the mobile
industry’s economic contribution is expected to increase 32 per cent to
$1.1 trillion, or 4.9 per cent of GDP, up from $833 billion (4 per cent
of GDP) in 2017, driven by increased productivity and the ongoing
digitisation of industry and services. North America’s mobile ecosystem
also supported nearly 2.4 million jobs in 2017 and was responsible for
$114 billion in public sector funding via general taxation (not
including funds raised by spectrum auctions).

However, the industry in North America is currently undergoing a period
of rapid change, driven by large M&A deals involving telecoms and media
companies, heightened competition from internet players such as Netflix
and Amazon, and the growing adoption of technologies such as the
Internet of Things (IoT). The number of IoT connections in North America
is forecast to almost triple between 2018 and 2025, reaching almost 6
billion.

“North American mobile operators are offsetting the decline of many
traditional mobile services by successfully unlocking new revenue
opportunities in content, IoT and – very soon – 5G,” added Granryd. “The
early 5G use cases in the region are likely to focus on the provision of
enhanced mobile broadband offerings to the consumer market, while
services in areas such as autonomous vehicles, industrial and vehicular
automation, remote medical surgery, and advanced AR and VR, will gain
scale soon after.”

The new report ‘The Mobile Economy: North America 2018’ is
authored by GSMA Intelligence, the research arm of the GSMA. To access
the full report and related infographics, please visit: www.gsma.com/mobileeconomy/northamerica/

-ENDS-

About the GSMA The GSMA represents the interests of mobile
operators worldwide, uniting more than 750 operators with over 350
companies in the broader mobile ecosystem, including handset and device
makers, software companies, equipment providers and internet companies,
as well as organisations in adjacent industry sectors. The GSMA also
produces industry-leading events such as Mobile World Congress, Mobile
World Congress Shanghai, Mobile World Congress Americas and the Mobile
360 Series of conferences.

For more information, please visit the GSMA corporate website at www.gsma.com.
Follow the GSMA on Twitter: @GSMA.